Blocked corporate debt in Montenegro reached €1.755 billion at the end of September, with the bulk of liabilities concentrated among companies and entrepreneurs whose accounts have remained blocked for more than a year. Data from the Central Bank of Montenegro show that 18,058 companies and entrepreneurs had blocked accounts, an increase of 138 compared with the previous month.
Debt subject to enforcement rose by approximately €32.83 million, or 1.91%, during September. Long-term arrears accounted for almost the entire outstanding amount. Companies and entrepreneurs with accounts blocked for more than one year owed approximately €1.733 billion, equivalent to 98.77% of total blocked debt. The liabilities were also heavily concentrated among the largest debtors. The 10 entities with the highest blocked accounts together accounted for approximately €732.4 million, or 41.73% of the total.
Montenegro had around 71,449 registered business entities, meaning that approximately one quarter were recorded as having blocked accounts. A substantial portion of those entities, however, were classified as inactive. The structure of the blocked-debt stock combines current financial difficulties with long-standing liabilities accumulated by companies that have effectively ceased normal operations.
This distinction is relevant for the banking sector. Montenegro’s banks remain highly liquid and profitable, meaning blocked corporate accounts do not directly correspond to an equivalent level of loan losses. Persistent arrears nevertheless affect payment discipline and creditor recovery and create additional risks for suppliers and smaller businesses exposed to delayed payments. The increase in blocked debt leaves Montenegro with a substantial stock of unresolved corporate liabilities while new companies, investment and credit activity continue to expand.
